Perth, May 29, 2006 (ABN Newswire) - Olympia Resources Ltd (ASX: OLY) is pleased to announce Colonial First State Investments have become a substantial shareholder in the Company, through the acquisition of 7,500,000 new shares in the recent placement to institutional and sophisticated investors. The acquisition represents 8.26% of Olympia Resources issued capital.

Commenting on the investment, Olympia Resources chairman Mal Randall said, "Colonial's decision to invest in Olympia confirms that we are developing some very exciting projects at Keysbrook and Harts Range, as well as our zircon project in Kalimantan. We welcome their investment and look forward to developing a profitable long-term relationship."

Olympia Resources raised $3.164 million last week through a placement of 15.82 million $0.20 new fully paid ordinary shares to finance the on-going development of the Keysbrook Mineral Sands and Harts Range Garnet projects. The funds will also be used to finance ongoing exploration activities, capital expenditure and working capital.

Olympia Resources has earned its first revenue payments from zircon shipments to China from Kalimantan. Olympia purchases zircon from local Indonesian miners and transports and sells the zircon as concentrate to two major Chinese customers.

Olympia plans to use some of the proceeds of the shipments to fund its on-going zircon exploration program in Kalimantan. If exploration is successful Olympia plans to commence its own mining operation and supply up to 100,000 tonnes of zircon concentrate to China annually for the next 10 years.

Last month, Olympia announced it had discovered a 19.9 million tonne mineral sands inferred resource, containing 1.1 million tonnes of heavy mineral grading 5.5% HM, at Yalyalup, southwest of Perth. The Yalyalup discovery fits into Olympia's plans to develop a major mineral sands mining and processing operation at Keysbrook, located 70 kilometres southeast of Perth.

The details contained in this report that pertain to resource estimation and mineralisation are based upon information compiled by Mr John Baxter who has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2004 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (JORC Code). Mr Baxter consents to the inclusion in this report of the matters based upon his information in the form and context in which it appears.

For further information about Olympia Resources, please visit our website at www.olympiaresources.com.

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